Payment services: Account issuance service

How is account issuance regulated under the Singapore PSA?

Under the Payment Services Act (PSA), Singapore, account issuance is regulated under the activity based, risk-focused licensing framework.

  • Account issuance service providers must hold a license to provide services relating to the operation of a payment account (an e-wallet or a non-bank issued credit card)
  • The service provider can either hold
    • a standard payment institution license to conduct payment services below a specified threshold
    • a major payment institution license without any limits on transaction volume or float

The licensee must comply with the ongoing requirements set out under PS Act and other relevant legislations including – AML/CFT requirements, periodic returns, cyber hygiene, business conduct, disclosures and communications and annual audit requirements. Additionally, the licensee must not facilitate users to withdraw e-money from their accounts and exchange the e-money for Singapore currency if the user is resident in Singapore.